Individual Retirement Accounts

Individual Retirement Accounts (IRAs) are powerful tools to help you save for retirement—no matter where you are in life or career. Different types of IRAs offer different tax advantages and contribution rules, so choosing the right one depends on your goals, income, and employment situation.

Here’s a simple breakdown of the most common IRA options.

  • A Traditional IRA allows you to save for retirement with potential tax advantages today.

    Key Features:

    • Contributions may be tax-deductible, depending on income and participation in an employer plan
    • Investments grow tax-deferred
    • Taxes are paid when funds are withdrawn in retirement
    • Required Minimum Distributions (RMDs) generally begin at age 73

    Best for:
    Individuals who want an immediate tax benefit and expect to be in a similar or lower tax bracket in retirement.

    Customers can rollover an IRA from their employer sponsored plan to a traditional IRA. This enables you to keep retirement savings moving forward when changing jobs.

    Key Features:

    • Funded by rolling over assets from a 401(k), 403(b), or other employer-sponsored plan
    • Maintains tax-deferred status
    • Offers broader investment flexibility
    • Consolidates retirement savings into one account

    Best for:
    Individuals transitioning between employers who want continued control over their retirement savings.

  • A Roth IRA offers tax benefits focused on future income.

    Key Features:

    • Contributions are made with after-tax dollars
    • Qualified withdrawals in retirement are tax-free
    • No RMDs during your lifetime
    • Contribution limits are based on income eligibility

    Best for:
    Those who expect to be in a higher tax bracket later or want tax-free income in retirement.

  • An Educational IRA is an investment account designed to help save for qualified educational expenses and reduce the financial burden of college expenses.
  • Income limits*** apply when opening an educational IRA and are set by the IRS.
  • Contributions are made with after-tax dollars and are not tax-deductible. Contributions limits apply per beneficiary***.
  • Interest earned is tax-free at withdrawal. Early withdrawals on interest are subject to a penalty***.
  • Withdrawal for qualified educational expenses is tax-free.

Union Bank wants to help the residents of West Central Arkansas and the River Valley save for their future. Visit one of our convenient locations in Mena, Paris, Wickes, Hatfield, Caulksville, Clarksville, Ozark, Waldron, Russellville, and Booneville to open a retirement investment account such as a Traditional IRA or a Roth IRA, or an Educational IRA investment account for your child(ren).

*Subject to minimal conditions. Consult a tax advisor. **Certain exceptions apply, such as healthcare, purchasing a first home, etc. ***Consult a tax advisor.

A SEP IRA is a retirement plan option for self-employed individuals and small business owners.

Key Features:

  • Contributions are made by the employer
  • Allow for higher contribution limits than traditional or Roth IRAs
  • Tax-deferred growth
  • Simple to establish and maintain

Best for:
Self-employed professionals or small business owners seeking a flexible retirement solution.


An Inherited IRA is established when an individual inherits an IRA from someone who has passed away.

Key Features:

  • Distribution rules vary based on relationship to the original account owner
  • Special withdrawal timelines may apply
  • Tax treatment depends on the type of IRA inherited

Best for:
Beneficiaries who want to manage inherited retirement assets in a tax-efficient way.








Find the IRA that Fits Your Future

The right IRA can make a meaningful difference in how you prepare for retirement. Our team is here to help you understand your options and choose the account that aligns with your goals.

Talk with us today  to get started or to review your existing retirement strategy.